Posted on 11/10/2010 7:22:34 AM PST by WebFocus
Zillow just released a devastating third quarter housing report. Basically every major indicator is crashing:
* The decline in home values accelerated in September, dropping 0.4% month-over-month
* Foreclosures reached an all-time high
* A record 23.2% of mortgages are now underwater
The double dip -- already a rare phenomenon -- is now entering an unprecedented free-fall. Zillow economist Stan Humphries says prices won't hit bottom until next summer at the earliest, as foreclosure activity grows.
Humphries warns: “While not unexpected, the unceasing declines in home values signal that we’re in for a long, bleak winter of continued troubles for the housing market. The length and depth of the current housing recession is rivaling the Great Depression’s real estate downturn, and, with encouraging signs fading, will easily eclipse it in the coming months."
(Excerpt) Read more at businessinsider.com ...
More good news?
If you look up your neighborhood pricing that zillow uses you will see how useless this site is. Making wild projectiions to make news is hardly a new thing.
destroying American one home at a time. Thanks Dems.
If this keeps up, it will cost more to buy a vehicle than a house. That doesn’t make sense.
>> every major indicator is crashing... The decline in home values accelerated in September, dropping 0.4% month-over-month
ROFL!
Housing prices are still at least 20% too high. An 0.4% m-o-m decline is NOT crashing. That compounds out to about 4.7% decrease over one year.
We need an asset devaluation of considerably more than that to put this country back on a sound fiscal footing.
RE: If this keeps up, it will cost more to buy a vehicle than a house. That doesn’t make sense.
Been to certain spots in Detroit lately? Some houses cost less than a new Toyota Camry.
Yes, DETROIT, what used to be the automobile capital of the USA, the land of Motown....
What double dip?
We are seeing the same dip as before.
Stupid dems threw money at housing to subsidize first time
home buyers. Now that is over.
Stupid Ben is devaluing the dollar. Higher gas prices kill the housing market three ways:
1) Outlying houses drop in value as it cost more to commute.
2) Less money for homeowner each month, must spend on gas to get to work, at end of month may not have money for mortgage.
3) As gas goes up, other energy cost go up, so big houses have utility bills larger than the mortgage payment.
It’s easier to move if you live in a vehicle, assuming it has wheels, an engine and/or sails!
I can see trying it someday
It has always been about 10-15K+ less appraisal value than ours until about 2 months ago and now all of a sudden it's worth (according to Zillow) 1K more than ours. The only thing we can think is that some how their Realtor was able to go into Zillow and fiddle with the numbers.
For almost five years I had to listen to my neighbor going on and on about how much the value of our homes had increased. My reply was always, “that’s nice, but we bought our home to live in, not as an investment.”
For the past two years I’ve had to listen to my neighbor going on and on about how much the value of our homes had decreased. My reply is always, “that’s nice, but we bought our home to live in, not as an investment.”
I’m certain that sometime in the future I’ll be listening to my neighbor going on and on about how much the value of our homes has increased. And my answer will be.......
The banks have profit margins so high that they don’t know what to do with the money. I’m not going to gnash my teeth over affordable housing. Sucks if you’re one of the home-owners who bought high, but I don’t see this crashing the economy again.
My neighbor’s home was for sale this last summer. City assessment which was inflated was $295,600.00. He was asking $290,000.00. Sold for 285,000.00. Hardly a unprecedented free-fall.
“What we need is legislation that stops all foreclosures and taxes responsible homeowners to pay for other people’s mortgages. In addition, all IRAs and other retirement savings must be transferred into a government pool and redistributed fairly so government employee union pension funds remain solvent. Finally, responsible working taxpayers need to accept health care rationing and be willing to pay much higher premiums so that illegals and deadbeats may participate in America’s health care system, and retired government employees will continue to get their lifetime health care benefits paid for. Oh wait... that third thing has already been passed. Well, then those first two items must be priorities.” - Typical Democrat
It could easily take out the banks since they have written paper that is no longer worth its face value.
I have money saved to buy a home and cannot bring myself to do it. I SO want to move out of apartment living but I am also terrified of making a mistake and buying too high. Ughhh....
Econ 101. There is no free lunch. All costs are carried, somewhere. In free markets costs and prices are close to the product or service. In less, non free market, cost and prices are transferred, temporarily, to other places in the larger economy, causing distortion, unclearness in prices. In short, know one knows true prices, but acts on what distorted price information anyways because you have to.
Anyways, eventually, costs, prices revile themselves. Right now, Fedgov,others are trying to finger the delusion dyke and prevent the sweeping flood of price collapse to what willing buyers and unsupported sellers will trade at.
but I do worry about those young people who bought their first homes when the market was booming...Bush years before the crash.....and now are stuck with a too small home as their families start to grow...
In a free market, I don’t see why prices of housing wouldn’t always decay. No one worries about used cars decaying in prices over time. What is so special about a brand new house, ten years later, with all the beatings, older furnace, bathrooms, roof all decaying, declining in price.
A house is just a material object. A think. Decaying from day one.
“I have money saved to buy a home and cannot bring myself to do it. I SO want to move out of apartment living but I am also terrified of making a mistake and buying too high.”
Look, it’s very simple. All that matters is how LONG you intend to live there. Home prices have ALWAYS been like a cork on the ocean - they go up and down. It’s just right now the ups and downs are higher. But if you intend to live there are at least 10 years, it is highly unlikely you could “buy too high.”
If you only intend to live there for 5 years or less, I’d probably stay in the apartment with the way things are now.
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